Jessica O'ConnorNearly four in 10 adults aged 45 to 75 who care for an elderly relative have either stopped working altogether or reduced their hours, leading to significant income losses and long-term employment consequences, according to research from Just Group.
The study showed that 37% of carers in this age group have stepped back from paid work to meet caring responsibilities, with 9% leaving employment entirely and a further 28% cutting their hours.
Among those who are the sole carer for an elderly dependant, the impact is even more pronounced: 14% have exited the workforce and 33% have reduced their working time.
This withdrawal from employment is resulting in substantial financial losses.
Carers who reduce their hours report an average income loss of £522 per month, equivalent to £6,268 a year.
Around one in seven (14%) say their monthly income has fallen by more than £1,000 as a direct result of providing care.
Alongside lost earnings, carers are also absorbing additional costs linked to their caring role.
Out-of-pocket expenses such as travel, food shopping and other essentials average £100 per month, with 11% spending more than £200 each month on these hidden costs.
The findings highlight the employment pressures faced by the so-called “sandwich generation” – workers who are simultaneously supporting children, caring for ageing parents and trying to maintain their careers.
For many, caring responsibilities peak at a time when earnings would otherwise be at their highest.
Emma Walker, director at retirement specialist Just Group, said: “We’re familiar with the physical and mental toll the ‘sandwich generation’ face as they are squeezed between work, supporting children and caring for ageing parents.
“What isn’t thought about so often is the financial and professional price this generation pay for caring.
“Many scale back their working hours and some leave the workforce altogether in order to meet their caring commitments – with the knock-on effect that, on average, their income is reduced by hundreds of pounds every month.
“This often coincides with the period in their careers when people reach their peak-earning potential, a point at which many may have planned to use spare income to build up pension pots and pay off the mortgage.
“Of course, many carers are glad to be able to take care of their family and don’t count the cost. But it’s important that people don’t overlook the impact stepping away from work can have on their financial future.”
